Tag: money market - Page 2 - 3auk

credit creation

Credit creation is the way commercial banks increase the total amount of money in an economy. They do

The bank credit multiplier (also called the money multiplier) measures the maximum amount of new bank deposits that

The capital ratio (also known as the capital adequacy ratio) measures a bank’s financial strength. It compares the

The reserve ratio (also known as the cash reserve ratio) is the portion of customer deposits that banks

A loan is a quantity of money taken from a lender or a bank that you must pay

An overdraft is a banking service that allows you to spend more money than you have in your

A savings account is a type of bank account where you keep money that you do not plan

A demand deposit account is a type of bank account that allows you to withdraw your money at

A deposit account is a type of bank account where you can safely store your money. These accounts

Commercial banks are financial businesses in the private sector. Their main activities are accepting deposits from customers and